Student Loans Without Cosigner

Student Loans Without a Cosigner 

If you are a student who doesn’t have enough credit or has a low income to get student loans, then you probably need a cosigner. In the USA, it has become common for students to ask their parents or family member to cosign a student loan for them. Nevertheless, not all students can find a cosigner.

Therefore, in this guide, we are covering the ways to get student loans without a cosigner. Getting student loans without a cosigner can prove to be challenging if you have a limited credit score.

Our general recommendation is to look for ways to qualify for federal student loan options first, as they are easier to get compared to private loans. In our guide, we will cover everything you need, in detail, to get student loans without a cosigner.

Federal Student Loans

The U.S. Department of Education offers a wide range of financial aid options , such as scholarships, federal student loans, and grants for students. The good news is you do not necessarily need a cosigner to get federal student loans.

There are various federal student loan options available for the students. Here are some of the federal student loan providers and a piece of brief information about each of them:

  1. PLUS federal student loans.
  2. Stafford federal student loans.
  3. Perkins federal student loans.

PLUS loans

Direct PLUS Loans is eligible for the parents of students and graduates. When a graduate takes this loan they call it a Grad PLUS loan, when a parent takes it, they call it a parent PLUS loan. The application process is simple; on the Department of Education’s website, you can find the online application for PLUS. Take note that, some colleges may require a different kind of application process.

PLUS loans can be a reliable option, however, keep in mind that the interest rate for PLUS loans is about 7,5 % which is higher than other federal student loans. Also, you would need an okay credit score to get started with that.

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Stafford loans

Another choice of option for getting student loans is getting Stafford loans. Stafford federal student loans are eligible for both undergraduate and graduate students. There are two main types of Stafford federal student loans:

  1. Subsidized Stafford Loans
  2. Unsubsidized Stafford Loans
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Subsidized Stafford federal student loans are for the students who need financial help. The U.S. Department of Education is paying the interest rate for this type of Stafford loans while you are enrolling at the college. The terms of subsidized Stafford loans are slightly better than the other federal student loans. The overview of subsidized Stafford loans as follows:

  • If you are an undergraduate student in need of financial aid, you may get Stafford loans
  • The amount of your student loans is determined by your school, just covering your financial need
  • The Department of Education pays the interest rate instead of you. In cases like you have to be at school at least half-time, during the deferment period and for the six months after your leave
Unsubsidized Stafford student loans are one of the easiest ways to get student loans. The overview of the unsubsidized Stafford federal student loans are:

  • Apart from subsidized Stafford loans, both undergraduate and graduate students may be eligible to get unsubsidized Stafford student loans
  • The amount of the student loans you are taking is determined by your school, based on your cost of attendance and the need for financial aid
  • Being different than subsidized Stafford loans, you are responsible for paying the interest rate for your unsubsidized Stafford loans

Perkins loans

There are federal loans called Federal Perkins loans , but unfortunately, this program is no longer available. If you want to get student loans without a cosigner from now on, Perkins loans are not among your options anymore. Perkins loans were for the students of undergraduate and graduate who had exceptional financial aid need. Perkins loans discontinued after September 30, 2017. If you have already got the Perkins loans, you may obtain information about further steps from your school or your loan servicer.

Private student loans without a cosigner

One of the ways of getting student loans is to get private student loans. If you need financial help and are not qualified for federal student loans, you might think about getting private student loans from lenders and non-governmental banks. In the USA, there are plenty of private student loans lenders. Each of them has different approval criteria. Nevertheless, to get private student loans, you have to meet specific requirements. We are providing you with general requirements of getting private student loans. These are:

  • You have to be USA citizen; most of the private lenders are not inclined to give student loans to the non-citizens.
  • You have to be at least 18. In many states, this number can be 19 or even 21 to get a private student loan.
  • You must have a good income. Most of the loan lenders prefer to give loans who earn more than $25,000 a year.
  • You need to have a good credit history. Private lenders are mainly looking for the credit score above 650. If a student has a little credit history, it might be challenging for them. Having no credit history is not desirable as well; it can make you ineligible for the student loans.

The thing with private student loan lenders, the interest rate is being higher than the federal student loans. When it comes to interest rate, some of the private loan lenders have fixed interest rates above 10%. There are variable interest rates for private loan borrowers if they want to get student loans.

Private lenders providing student loans without a cosigner

Getting private student loans are worth to consider if you need financial help and do not have a cosigner to cover your college costs. There are many private student loan lenders in the industry. We will give you information about some of the bests to consider if you need student loans without a cosigner.

  1. Lendkey. Community banks and individual credit unions fund Lendkey’s loans. The interest rates are not being higher, and borrowers may apply through the online portal. To get student loans from Lendkey, borrowers should have at least three years of credit history, and a minimum income. You can decrease the interest rate if you set up automatic payments. There is no origination or application fee for getting a private loan from Lendkey.
  2. Citizens Bank. One of the best private loan lenders is the Citizens Bank. If a borrower has a good credit history and income higher than $12,000 annually, the chances are high to get student loans from Citizens Bank. If you already have an account in Citizens Bank, there is a chance of interest rate reduction. It does not matter if you are a graduate or undergraduate student; you can get private loans starting from $1,000 to $295,000. There is no application fee as well.
  3. FundingU. This is a private loan company offering loans to the students without a cosigner. Apart from the other private loan lenders looking only for good credit history and a good income, FundingU is usually looking for the academic record, internship experience of the borrower and much more.
  4. Sixup. To get student loans from Sixup, borrowers do not need to have a credit history. Nevertheless, if they have one, it will be considered as well. There are except cases when a cosigner is required.
  5. Ascent. Ascent offers private student loans to the graduates, college juniors and seniors. Borrowers should meet specific requirements to get student loans from Ascent.

Which one is better for you: Federal student loans or Private student loans?

After reading the information provided, you should be able to make your own decision on whether choosing federal student loans or private student loans. What we can do here is showing you the advantages and disadvantages of each option.

Federal student loans offer repayment plans and student loan forgiveness options. The protection with federal loans is much better than private loans too.

Private loan lenders load lots of interest rates to the borrowers. Even though there are variable interest rates available, it is better applying firstly to the federal loans. We have already explained that if you apply for subsidized federal student loans, your interest rate will be paid by the U.S. Department of Education till you graduate. The interest rates in federal student loans are slightly lower than in private student loans.

Most of the private lenders are looking at the creditworthiness and are offering loans accordingly. But, take in mind that many students are too young to have a proper credit history. In most cases, private loan lenders want you to have a cosigner also. However, if you use private loans correctly, they can be a lifesaver. You may think about getting private student loans, about backing up your federal student loans and cover your education fee and other educational costs.

Private Student Loan Consolidation

Private student loan consolidation is available through various banks we work with to combine all your student loans into one new loan. Private student loan consolidation requires a good credit score and will often have better rates than the federal student loan.

Disadvantages of no cosigner student loans

As you might already know, getting student loans without a cosigner is possible. However, there are certain drawbacks of no cosigner student loans.

Not everyone can get federal student loans as there are strong eligibility requirements. But it is not easy to get private student loans either. High-interest rates and conditions to get loans is quite challenging. In the long-run, it will be very costly to have private loans with higher interest rates. Nevertheless, if you believe you will be able to find a job after graduation, you can get private student loans.

Federal loans are the main stop for students who need financial aid. Usually, it is because students do not need a cosigner for getting federal student loans. However, you should not be afraid of applying for private student loans without a cosigner. As there is a possibility yet, try the ways available to finance your education.  

How to get a student loan without a cosigner

 

As we already mentioned above, there are two primary ways of getting student loans. You may either get federal student loans or private student loans.

Our recommendation is, you should first think about getting federal student loans, as they are mainly flexible for students with its repayment plans, federal loan forgiveness programs and more.

Private student loans don’t have the same benefits as federal student loans. You should think to backup your educational costs with private student loans.

Getting federal student loans

 

If you want to get federal student loans, you should fill out the free application form for Federal Student Aid. Fill out the application form as an independent student and provide the information about yourself, not your family. You can get your parents’ help to fulfill the application form. Do not be afraid; the involvement of your parents does not mean you need a cosigner to get federal student loans. In most cases, it is desirable to involve your parents as the lenders will take into consideration of your parents’ income when qualifying you for a federal student loan aid. Take in mind that, if you receive a federal student loan you are obliged to pay the money yourself, even though your parents’ income is included in this process.

The good point here is that if you get a grant, you won’t be required to pay the amount back, but if you get student loans, you are responsible for paying the money back.

After submitting your application, you will get a Student Aid Report (SAR). This is the summary of information in your application form. When you get a SAR, check out the information on the report to ensure it is all correct. If you are qualified for federal student aid, you will get an award letter of how much federal funding you can achieve.

Getting private student loans

 

You don’t need to fill out a FAFSA form, but you need to build a good credit history. Lenders are mainly looking for your credit history to determine your eligibility to a private student loan.

Your credit score shows how you have managed and paid your money till now. If your score is high, your chance of getting a private loan with a better interest rate is higher.

One of the best ways of getting student loans without a cosigner is applying for a private student loan. Private student lenders have specific credit requirements.

If you want to get a private student loan, make sure you know your credit score is above 650. Each loan lenders have different requirements, although it is essential to have a good credit history and income.  

How to improve your chances of getting approved

Getting private student loans without a cosigner can be easier if you meet specific eligibility requirements. Except for having a high credit score, you should have paid your student loan debts on time, by the due date. Even missing a payment can lower your credit score, which is not desirable. As we earlier mentioned, you need a credit score of more than 650 to qualify for a private student loan. If your score is higher than 700, you may be eligible for private student loans with better interest rates. Having a steady and stable income will make you highly eligible for private student loans. One of the best ways to increase the chances of getting a private loan is to apply for a smaller amount.

FAQ

What Loan Options I have without Involving a Cosigner?

If you wonder how to get a student loan without a cosigner, you can start by exploring different federal loans. Such loans are distributed based on a student’s financial needs rather than credit history or cosigner availability. After exhausting all federal options, you can start looking for private student loans with no cosigner. Sure, it will be hard to find a decent opportunity with favorable loan terms from a private lender, but it is worth trying if you have no other choice. 

How to Apply for No-Cosigner Student Loans?

In federal college student loans with no cosigner, you need to fill FAFSA and supply all necessary information. Then the officials will review the application and decide whether to approve the loan or not. Meanwhile, private loan applications require different steps, depending on the lender. Keep in mind that a loan without a cosigner might require different factors that will secure the payment. For instance, you might need to have a better credit history, at least a 690 credit score, or a steady income to be eligible for private loans. 

As a Parent, How Much Can I Borrow without a Cosigner?

If you opt for federal student loans without a cosigner such as a Parent PLUS a loan, the maximum amount of funding is calculated by extracting any other benefits received from the cost of education. This amount changes for private student loans without a cosigner depending on the loan terms established by the lender. In all cases, it is not advisable to exceed the amount that you really need. Otherwise, when it comes to repayment, you will have a hard time to meet the debt obligations. 

How to Find the Best Student Loans without a Cosigner?

There are several factors to consider before applying for a loan. For instance, you need to prefer fixed interest rates over variable interest rates. In this way, you will secure the same payments even if interest rates increase in the market. Keep in mind that if you want to get private student loans without a cosigner and no credit history, you will face some disadvantages such as a higher than average interest rate or repayment period. At least what you can do is, before deciding on a lender, try to compare the features or loan terms provided to choose the relatively suitable one. 

Is it Better to Get a Loan with a Cosigner?

Having a cosigner has both benefits and drawbacks. Not everyone has a relative or friend who can be a reliable person to act as a cosigner. In this case, it is helpful to receive student loans without a cosigner. However, as the risk of non-payment for the lenders increases, they will secure their position by requiring higher interest rates or better credit performance. Hence, it is advisable to consider the pros and cons of loans with and without a cosigner before arriving at the final decision.